264 



I would find myself very hard put to justify this sealing program 

 to anybody, to my constituents or the people at large if you folks go 

 on advertising sealskins to support this operation. 



I cannot see how the seal is going to be preserved by you folks adver- 

 tising sealskins. I find myself hard put to understand how the Aleuts 

 are going to be aj)preciably bettered by having you folks advertising 

 sealskins and draining money off from the contract that could have 

 gone into the pockets of the Aleuts up there. 



Mr. Pelly. Mr. Chairman, could we have a justification for this 

 advertising submitted for the record so that we can find out on what 

 basis they negotiated a contract? 



Mr. DiNGELL. That would be most welcome. 



Mr. Pollock. We will be happy to supply that. 



I think the basic premise is that these furs are desirable and they are 

 sold on the market ; there is more money in the fund which will assist 

 the natives more. 



But we can supply that, Mr. Chairman. 



(The information follows:) 



Justification for Fouke Advertising 



Under law (16 U.S.C. 1145), the Secretary of Commerce is to provide for the 

 processing of fur sealskins and for the sale of fur sealskins, and the Secretary is 

 authorized to enter into agreements with any public or private agency or person 

 for this purpose. 16 U.S.C. 1154(a) (4) specifically contemplates market promo- 

 tion by the Secretary. The Fouke Company is under contract to the U.S. Govern- 

 ment for processing U.S. Government-owned Alaska fur sealskins and selling 

 them for the account of the U.S. Government. After deduction of the Fouke ^Com- 

 pany compensation, based upon the contractually prescribed formula, the net pro- 

 ceeds received by the U.S. Government are deposited under a special account in 

 the U.S. Treasury. Congress appropriates funds to the Department of Commerce 

 and they are in turn made available to the National Marine Fisheries Service to 

 defray expenses of administering the Pribilof Islands and the related fur seal 

 program including, as an example, the payment of wages to the native Aleut 

 inhabitants who are employees of the National Marine Fisheries Sen'ice. 



The Ser\nce has considered fur seal advertising by the contractor as in the in- 

 terest of the Government by serving to stimulate interest in fur seal, which in 

 turn would be reflected in prices received from sales and thereby, the amomit 

 of proceeds to be received by the Government. The current contract provides that 

 the contractor will promote and advertise fur seal, and estimated promotion and 

 advertising costs were included as part of the total estimated costs from which 

 the negotiated contract price formula was established as the basis for payment 

 to the Company upon sale of the fur sealskins. The Government-owned fur seal 

 thereby bears an allocation of the Fouke Company's total advertising program 

 and the Government, under the contract, reserves the right to review from time 

 to time the Company's general program of advertising and promotion. However, 

 the Company is not contractually required to submit each individual advertise- 

 ment for specific Government approval before publication, and the Company does 

 not receive direct payment or direct reimbursement from the Government for 

 advertising expenses. 



Mr. DiNGELL. Well, we give the Japanese and the Kussians a share 

 of the take. 



Mr. Pollock. No, sir; the Japanese and the Canadians get a share 

 of the take and the Russians give them 15 percent as we do. 



Mr. Pelly. Has the price of furs not gone down since the depart- 

 ment started advertising? 



Mr. Pollock. No, sir ; it started going down since the conservation- 

 ists have been talking about not killing any kind of animals. 



Mr. DiNGELL. Do we give them skins or give them cash money or 

 a percentage of the take or what do we give them ? 



